Harry Archie
Domestic oil refineries in Nigeria increased their crude oil imports by 151.5 per cent in July 2026, as declining local crude supplies forced operators to rely more heavily on foreign sources to sustain their operations.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that domestic refineries imported about 5.13 million barrels of crude oil in July, representing a substantial increase from the 2.04 million barrels imported in June.
The development highlights a growing challenge within Nigeria’s petroleum sector, where the country continues to produce crude oil but local refineries are still struggling to secure adequate supplies.
The sharp rise in imports came against the backdrop of a decline in the quantity of locally produced crude delivered to domestic refineries during the period.
Nigeria has invested heavily in expanding its domestic refining capacity in recent years, particularly with the commissioning and ramp-up of the Dangote Petroleum Refinery and efforts to revive older government-owned refineries.
The Federal Government has repeatedly said that increased domestic refining would reduce the country’s dependence on imported petroleum products, conserve foreign exchange and strengthen energy security.
However, the availability of crude feedstock remains a major factor determining whether refineries can operate consistently at their installed capacities.
Industry operators have previously raised concerns over crude supply agreements, pricing and access to locally produced crude, particularly as refiners compete with international buyers for available supplies.
The increase in crude imports therefore raises questions about the effectiveness of measures designed to prioritise domestic refineries in crude allocation.
Analysts say sustained access to crude is essential if Nigeria is to fully realise the benefits of its ongoing refinery expansion.
A stronger domestic refining sector could reduce the country’s reliance on imported refined petroleum products, create jobs and increase value addition within the Nigerian oil industry.
But if local refineries continue to experience shortages of crude, operators may be forced to depend on imported feedstock, potentially increasing production costs and weakening some of the economic gains expected from domestic refining.
The July figures are therefore likely to intensify discussions about crude allocation, refinery economics and the Federal Government’s broader strategy for transforming Nigeria from a major crude exporter into a significant producer of refined petroleum products.
Vanguard’s report identified the NMDPRA data as the basis for the July import figures.
